The company has completed its largest Bitcoin acquisition in months, purchasing 10,624 Bitcoin for about $962.7 million last week.
Summary
- Strategy Inc. acquired 10,624 Bitcoin at a cost of $962.7 million, increasing its total assets to 660,624 BTC, despite facing a 60% decline in its stock value over the last six months.
- CEO Michael Saylor remains focused on accumulating Bitcoin for the long haul, dismissing the idea of selling assets to support dividends, and has established a $1.44 billion cash reserve to sustain the company for almost two years.
- The firm is encountering heightened competition as leading banks like JPMorgan and Morgan Stanley roll out Bitcoin-linked products, putting pressure on Strategy’s position as a primary corporate Bitcoin investor.
This strategic move, even as the company’s stock continues its prolonged decline, raises its total Bitcoin holdings to 660,624 BTC, valued at approximately $49.35 billion. The company has achieved a 24.7% yield on its Bitcoin investments year-to-date.
The purchase occurs during a period where the company’s stock has dropped nearly 60% over the last six months, falling from the $400s to the $170s, showing no significant recovery. Strategy’s stock is hindered by multiple resistance levels between $195 and $215, blocking any short-term rallies, leading to growing investor concerns regarding the company’s future.
Despite the negative trend, founder Michael Saylor holds firm to the firm’s “Bitcoin maxi” strategy, refuting the concept of liquidating Bitcoin to facilitate dividends. Instead, the company has established a $1.44 billion cash buffer, sufficient to cover dividends for nearly two years. Strategy has also introduced perpetual preferred shares, which Saylor anticipates will significantly impact the market in the next 12–24 months.
However, Strategy must contend with increasing competition. Major banks like JPMorgan and Morgan Stanley are introducing Bitcoin-linked products, offering managed institutional exposure to Bitcoin with limited upside, directly challenging Strategy’s status as the primary corporate avenue for Bitcoin investment. Furthermore, short-sellers, including Jim Chanos, have targeted Strategy, while companies like Metaplanet are adopting similar Bitcoin-centric treasury strategies.
As conventional financial institutions broaden their footprint in crypto, Strategy’s dominance as a corporate Bitcoin holder is under increasing scrutiny.
